Think a new-construction home is out of your price range? Think again. There are numerous cities where you can find new-construction homes for around or under $275,000.

Closing the Price Gap

While new-construction homes are typically more expensive upfront than older homes, the price gap has narrowed recently. According to a July report from the National Association of Realtors®, the median price of an existing home was $422,600, compared to $429,800 for a new home.

Cost Benefits of New Construction

When considering maintenance and repair costs, new-construction homes can be more economical in the long run. Many developers offer incentives such as upgraded finishes, help with closing costs, and buy-down mortgage rates, which can make new homes more affordable. For instance, 30-year fixed rates of 4.99% are now common, with short-term rate buy-downs as low as 1.99%, according to Jim Rosewater, president and CEO of National Builder Group.

Additional Perks

New homes often come with warranties that cover repair costs, and they are generally built for better energy efficiency. Realtor.com economist Joel Berner notes that now is a good time to buy new construction, as prices have stabilized while existing-home prices have risen.

Best Time to Buy

Nicole Brown, a global real estate adviser at Corcoran, adds that the end of the builder’s fiscal year is an excellent time to secure the best deals. Builders are motivated to close out their fiscal year with strong sales, making it a prime opportunity for buyers.

Top 10 Cities for Affordable New-Construction Homes

1. San Antonio, TX
2. Charlotte, NC
3. Raleigh, NC
4. Tampa, FL
5. Orlando, FL
6. Phoenix, AZ
7. Las Vegas, NV
8. Atlanta, GA
9. Houston, TX
10. Dallas, TX

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